Can a rental car cross into Argentina and Paraguay?

Direct answer: It depends on the rental company, and the gap is wide. The national chains (Localiza, Movida, Unidas) and the airport desks forbid taking the car out of Brazil, by contract clause. Local Foz do Iguaçu agencies, on the other hand, do exactly that: they hand over the car with the Carta Verde (Mercosur Green Card) included and the border crossing authorization. The permission covers crossing to Puerto Iguazú and Ciudad del Este, not driving deeper into Argentina or Paraguay.

This is the question that wrecks itineraries, because most people find out at the rental counter with the trip already booked. And most of what is written about it gets it wrong in both directions: either it says crossing is forbidden, or it says any rental company can sort it out.

The difference is where you rent

National chains and airport desks: no. The contract restricts use to Brazilian territory. In Movida's public contract, the clause expressly forbids use in other countries and in the perimeters adjacent to the borders without prior written authorization, and provides that the company may recover the vehicle, including by remote GPS immobilisation, when it approaches the border strip. Unidas and Localiza carry equivalent restrictions.

Local Foz agencies: yes, and it is their core business. In a city that lives off three borders, an entire market is built around this. The Carta Verde comes included in the daily rate and the authorization is issued with the contract.

Which Foz rental companies advertise border crossing

On 11/09/2026 we checked, on each company's own website, which Foz do Iguaçu rental companies publish border crossing as a service:

Listed alphabetically. This is not exhaustive and not a recommendation: it is what each company was publishing on the date we checked. Commercial terms change, so confirm in writing before booking.

Where the confusion comes from: the idea that only one company allows the crossing, and that none will go to Paraguay, has circulated in travel content for years. It traces back to a local news article from 2017, when one company was reported as the only one offering the Carta Verde in the city. The market has changed since; the old text kept being copied.

How far the authorization goes

This is the point almost no guide explains, and the one that causes most of the confusion at the counter.

The permission is for the border, not for the whole country. One of the companies puts it this way on its own site: driving is permitted only at the border, in the cities of Puerto Iguazú and Ciudad del Este. Another source describes the same rule as a radius limit from the border, in the order of 50 km.

In practice:

• It covers: Iguazú National Park (Argentine side), central Puerto Iguazú, the Three Borders Landmark, Ciudad del Este and the shopping district.
• It does not cover: driving down through Misiones, going to Posadas, or heading into Paraguay toward Asunción.

If your plan goes beyond that, confirm the limit in writing, because it varies by company and by contract.

What you need to carry

• Carta Verde, the Mercosur third-party liability insurance
• Border crossing authorization issued by the rental company, in the driver's name
• The vehicle document and your driving licence
• Your travel document: passport, or the national ID accepted for your nationality. A driving licence does not count as a travel document

What the Carta Verde covers (and what it does not)

An expensive misunderstanding lives here. The Carta Verde was created by the Mercosur Common Market Group and is regulated by SUSEP Circular nº 10/95. It is a third-party liability policy: it covers death, personal injury, medical expenses and material damage caused to third parties not being carried in the vehicle.

It does not cover your own vehicle, the passengers, or the driver. Having a Carta Verde does not mean the car is protected on the other side. That falls to the protection in your rental contract, which is exactly why the company's authorization matters so much. Ask whether the protection you paid for still applies outside Brazil.

The Carta Verde can be bought for periods ranging from three days up to a year, so check that it covers your whole stay.

If you cross without authorization

It is not just a breach of contract. The protection you paid for stops applying the moment the car leaves the country without cover, and any crash, theft or damage on the other side becomes entirely yours. With the chains that monitor by GPS, there is also the risk of the car simply being immobilised near the border strip, with a police report filed.

How to choose without getting caught out

Before booking, ask in writing and keep the answer:

1. Can the car go to Argentina? And to Paraguay?
2. Is the Carta Verde included in the rate, or charged separately?
3. Does the crossing authorization come with the contract?
4. How far does the permission extend, in cities or in kilometres?
5. Does the car's protection still apply on the other side?

Compare the total cost, not the daily rate. The company that lets you cross usually charges more per day, but bundles in what the other one does not sell at all. And the cheaper rate that cannot cross may cost you the whole excursion.

And if you would rather not drive

For many travellers that is the better call, and it is worth knowing before paying for a crossing:

• For Ciudad del Este: crossing on foot is usually faster on a busy day.
• For Puerto Iguazú: there is an international bus from the city bus terminal. See bus connections between Foz, Puerto Iguazú and Ciudad del Este
• Within Foz: a rental car is still useful, and ride apps cover the rest (how to get around Foz)

Before crossing by car, check the live bridge queue.

Sources: rental terms published by Foz do Iguaçu rental companies · Movida public contract (restriction to Brazilian territory) · SUSEP Circular nº 10/95 (Carta Verde) · verified 11/09/2026.